For those of you who are students of my premium services — Rapid Wealth Alliance, Small Cap Fortunes or The Speciale Report — you know I start each session with an overview of the broader markets, including the Dow, Nasdaq, S&P, Russell, Oil, Gold and BTC.
Why do I do this? Simply because I know that most traders are watching these asset classes and any extra insight could be helpful if you’re in or considering a position.
Gold has been very reactive to areas of support and resistance that I’ve been identifying on the chart.
A while back, we discussed an area which I believed was a good place to book profits. In fact, it was… because once tested, price fell off hard.
Again this past week, during our Rapid Wealth Alliance session, I told students the same.
I saw GC1! setting up for a long opportunity and, sure enough, the trade followed through as anticipated, tagged my suggested target and then pulled right back again.
Let’s take a look at the chart…
The closing candle on Feb. 8 confirmed a channel structure has turned from resistance to support and closed with enough conviction to be considered a buy signal.
$1,828 would’ve been my desired entry price, with a stop loss placed at $1,807 and an ascending profit objective of $1,860.
Just like I’m looking for an entry confirmation, giving price the chance to actually break out before I enter, I do the same with my targets.
The price will not always test the exact support or resistance structure, but it will test the “area” around it, hence the reason why you’ll always see my profit targets just shy of the actual structure itself.
My stop was placed just below the previous candle to the entry candle that failed to complete the entry breakout.
Had at any time during the course of this trade price closed below the structure which it had broken out from and I wasn’t stopped out, I would’ve closed the trade for a loss of an amount less than my calculated entry stop.
My target was just short of the next closest channel structure offering price resistance.
In just three quick days’ time, the entire move transpired. The trader was offered the opportunity to enter this trade at almost any given time prior to the final day’s activity.
Rules to Live By
“This life is what you make it. No matter what, you’re going to mess up sometimes, it’s a universal truth. But the good part is you get to decide how you’re going to mess it up.”
― Marilyn Monroe
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.